Category: 4. The best crypto exchanges

Choosing the best crypto exchange for you is about deciding what matters to you and researching your choices. Look for one of the best cryptocurrency apps that fit your trading needs, style, and experience level. From there, test the waters with a deposit to see how you like trading before adding more funds.

And remember: you can always try out several cryptocurrency exchanges to find the best fit. And since many options like Crypto.com and BlockFi pay crypto bonuses, you can even rack up rewards in the process.

When considering the best crypto exchange for you, it’s important to understand what matters to you. Some traders are more active and need in-depth tools. In contrast, some investors prefer simplicity and low fees. Plus, you can also consider exchange features like staking and crypto rewards.

Here are some of the most important factors to consider when choosing your cryptocurrency exchange.

Available Cryptocurrencies

Pretty much every exchange lets you trade popular cryptos like Bitcoin and Ethereum. But if you want more altcoins, exchanges like Coinbase, Crypto.com, and 1inch are some of your better options.

Trading Fees

Trading fees are one area where crypto exchanges differ greatly. And, oftentimes, the more beginner-friendly exchanges charge higher fees for their convenience.

For occasional traders, paying slightly higher trading fees might be worth it for simplicity. But if you actively trade, consider low-fee options like Binance.US and FTX.US.

Ease of Use

Like trading fees, crypto exchanges differ in terms of how beginner-friendly they are. Options like Coinbase or mobile trading apps like Robinhood are excellent for brand new traders. But if you want more trading tools and research, exchanges like Binance.US or Kraken are superior.

Security

If you lose access to your crypto wallet because of a scam or unauthorized access, there’s little hope of recovering your funds. And if an exchange suffers a hack, you’re basically at the mercy of the owners to restore your funds.

The best crypto exchanges have robust insurance policies in place and a history of not being hacked. This might sound extreme, but some exchanges like Bitfinex have been hacked several times, resulting in losses for its users.

For the most peace of mind, stick with reputable exchanges like Gemini and Coinbase.

Staking Rewards

If you want to earn passive income, choose a cryptocurrency exchange that lets you stake coins for rewards. Crypto.com, Gemini, and Kraken all have lucrative staking programs you can explore. In contrast, some exchanges like FTX.US don’t support staking, and other options might pay very low rates.

Payment Methods

How do you want to purchase your crypto?

For many investors, fiat-to-crypto trading is most common, so you need an exchange that lets you fund your account with money from your bank. Alternatively, you need an exchange that lets you buy crypto directly with your debit or credit card.

And for global investors, support for multiple currencies is another important consideration.

Privacy

Cryptocurrency exchange privacy really boils down to choosing a centralized or decentralized exchange. If you don’t want a middleman, DEXs like 1inch are some of the best decentralized exchanges you can use. However, the trade-off is ease-of-use, and centralized exchanges are much more beginner-friendly.

To choose the best crypto exchanges, we looked at fees, ease of use, supported currencies, security, reputation, and exchange features. We also test and review each exchange, and our ratings are based on our own editorial standards and beliefs and aren’t influenced by alternative factors.

When investing in cryptocurrency, it’s important to consider the risks and costs involved — cryptocurrency is highly volatile and not appropriate for all investors. Any exchange on this list may do a good job of meeting your cryptocurrency trading and investing goals, but always approach cryptocurrency with caution.

Best For: BlockFi is one of the most popular crypto exchanges for generating passive income. It’s original BlockFi Interest Account (BIA) lets holders generate monthly interest on a variety of cryptos and stablecoins. And you can still buy, trade, and swap crypto by using your BlockFi wallet.

You can also use the BlockFi Rewards credit card to earn an unlimited 1.5% back in crypto for your everyday spending.BlockFi has temporarily suspended new BIAs and is working on a new compliant lending and interest product, BlockFi Yield.

Potential Drawbacks: BlockFi is similar to cryptocurrency exchanges, but its main strength is its ability to pay crypto holders interest. It has enough basic spot trading features to get by for topping up your account. But if you want more in-depth trading features and coin support, it’s not the best exchange.

Trading Fees: BlockFi doesn’t charge trading fees, but you pay varying spread fees depending on the crypto and market. Some cryptos also charge withdrawal fees, so BlockFi is best for long-term holders.

Pros:

• Lucrative crypto interest account
• Unlimited crypto-back credit card with no annual fee
• Get up to $250 in free BTC for funding your account

Cons:

• BlockFi is dealing with regulatory issues and has suspended its BIA
• Not as many available cryptos or trading tools as other exchanges

Best For: FTX.US is the U.S. branch of FTX.com, a global cryptocurrency exchange. And if you want to trade on margin or trade futures, it’s one of the best crypto exchanges you can use.

Most exchanges don’t offer options and futures out of the gate, but FTX.US lets you trade Bitcoin and Ethereum derivatives. You can also get up to 10x leverage on margin trading, which is higher than Kraken. However, you need at least $100,000 USD or equivalent assets in your account to qualify for margin trading.

Potential Drawbacks: FTX.US supports under 20 cryptocurrencies, so selection is one downside. This exchange also lacks staking rewards or features that let you put your crypto to work to generate yield.

Trading Fees: Trading fees start at a 0.20% taker and 0.10% maker fee. You start getting trading discounts after trading over $100,000 USD worth of assets in a rolling 30-day period. Overall, FTX.US is one of the lowest-fee crypto exchanges alongside Binance.

Pros:

• Low trading fees
• Trade crypto options, futures, and on margin
• Free crypto bonuses

Cons:

• Low number of available cryptocurrencies
• Not the most beginner-friendly exchange

Best For: Robinhood is a popular commission-free investing app that’s also branched out into crypto. This mobile-friendly app lets you invest in popular cryptos like Bitcoin, Ethereum, Litecoin, Polygon, and Solana starting with just $1.

If you want a simple way to buy crypto from your smartphone, Robinhood is for you. Recently, Robinhood opened its waitlist to let users receive and send crypto from their account to other exchanges or wallets. This means you can soon use Robinhood to buy your favorite cryptos and then send them to an external wallet or platform that offers staking if that’s what you’re interested in.

Potential Drawbacks: Robinhood supports under a dozen cryptocurrencies, and this is its main drawback. If you want to occasionally add popular cryptos to your portfolio and keep things simple, it’s a great app. But for more crypto trading tools and asset support, look to various exchanges instead.

Trading Fees: Robinhood doesn’t charge commissions on crypto trades. But you still pay varying spread fees which are similar to many exchanges.

Pros:

• Simple mobile trading interface
• Also supports stocks, ETFs, and commodities
• Get a free stock when you sign up

Cons:

• Low number of available cryptocurrencies
• The ability to send and receiving crypto to other wallets is still rolling out

Best For: Kraken is one of the oldest cryptocurrency exchanges out there and began in 2011. It’s also a great exchange if you want advanced trading tools and to trade futures or on margin.

Kraken still has a simple trading interface if you’re new. But its premium Cryptowatch dashboard lets you analyze 2,000+ crypto markets and trade across multiple exchanges. The Kraken terminal itself offers robust charting and analysis tools as well. Plus, Kraken has excellent staking options that pay up to 23% APY.

Potential Drawbacks: Kraken has spot trading and a simpler mobile app and web version if you’re new to crypto. But this exchange really shines for advanced traders who use Kraken Pro. If you’re new to crypto, exchanges like Coinbase or Gemini are more beginner-friendly.

Trading Fees: Kraken spot trading charges a 0.9% fee for any stablecoin and 1.5% for other crypto or FX pairs. For Kraken Pro, fees start at a 0.26% taker fee and 0.16% maker fee. Margin fees vary by coin and futures start at a 0.05% taker fee and 0.02% maker fee.

Pros:

• Professional trading dashboard
• Margin trade with up to 5x leverage
• Trade across numerous markets with Cryptowatch

Cons:

• Steep learning curve for new traders
• High spot trading fees

Best For: Unlike centralized exchanges, decentralized exchanges (DEXs) don’t rely on a custodian or middleman to hold funds and process trades. Rather, DEXs use automated market maker protocols and let people exchange crypto and fiat in a peer-to-peer network.

And out of all decentralized exchanges, 1inch is one of the best. That’s because it’s a DEX aggregator that finds the lowest crypto prices across other DEXs and connects traders to get the best prices possible. And this decentralized exchange doesn’t charge trading fees. If you value your privacy and want to avoid fees, 1inch is one of your best options.

Potential Drawbacks: DEXs like 1inch aren’t nearly as beginner-friendly as centralized exchanges like Coinbase. For starters, you have to learn how to connect a crypto wallet to 1inch. And while you don’t pay trading fees directly, you still pay gas fees, which can get pricey depending on the crypto and blockchain network congestion.

1inch also has limited fiat options, so it’s really a crypto-to-crypto DEX aggregator above all else. If you’re willing to go down the crypto rabbit hole, 1inch is worth it. But for the occasional crypto trader, the learning curve isn’t something to take on lightly.

Trading Fees: 1inch doesn’t charge crypto trading fees. But you pay gas fees for every transaction that vary depending on the crypto and blockchain conditions.

Pros:

• Supports hundreds of cryptocurrencies
• 1inch doesn’t charge trading fees
• Works with numerous blockchains and crypto wallets

Cons:

• Steep learning curve for new traders
• Fiat-to-crypto trades are expensive

Best For: Coinbase is one of the largest exchanges in the world. It’s also very beginner-friendly, making it the best overall crypto exchange for beginner investors. And with extensive coin support, you can buy popular cryptos like Bitcoin or Ethereum plus plenty of altcoins.Coinbase also has staking rewards and a crypto rewards card that pays up to 4% back in crypto on daily spending. And there’s even a new Coinbase Learn program that pays you with free crypto for completing short educational modules.

Potential Drawbacks: Coinbase is very easy to use, but trading fees are slightly higher than some other cryptocurrency exchanges. The basic version of Coinbase doesn’t have many trading tools either, so you need to learn how to use the free Coinbase Pro interface if you want more trading capabilities.

Trading Fees: Coinbase charges various spread fees that vary depending on order size, payment method, and the crypto you’re trading. This can range from 0.5% to 2% or higher, which is steep. Using Coinbase Advanced Trade is a smart move since the first trading tier has a 0.40% maker fee and 0.60% taker fee.

Pros:

• Incredibly beginner-friendly
• Trade crypto starting with just $2
• Earn staking rewards for passive income
• Earn free crypto with Coinbase Learn

Cons:

• High Coinbase trading fees, especially for small trades
• You need to switch to Coinbase Pro to avoid high fees

Best For: Gemini is another leading cryptocurrency exchange that lets you buy and sell over 90 cryptocurrencies. It also has an excellent staking platform that lets you earn up to 8.05% APY by staking different coins. And, with its ActiveTrader offering, Gemini also caters to more serious crypto traders who need extra tools.

But where Gemini shines is in its security. The exchange is a licensed New York trust company, so it goes through more audits and cybersecurity reviews than your average exchange. Plus, U.S. dollars in your account are FDIC-insured up to $250,000. Gemini also has digital asset insurance and stores most assets in cold wallets which are less vulnerable to theft.

Potential Drawbacks: Gemini’s main drawback is that its fee structure is somewhat complicated. Normal mobile and web orders charge various fees depending on the order amount. And Gemini ActiveTrader has a completely different fee structure altogether.

Fees are similar to Coinbase overall but aren’t as low as Binance or DEXs like 1inch.

Trading Fees: Mobile and web fees cost $0.99 to $2.99 for orders up to $200. Orders over $200 then charge 1.49% of trade value. Gemini ActiveTrader fees start at a 0.40% taker fee and 0.20% maker fee plus 0.01% auction fee.

Pros:

• Gemini is a regulated U.S. exchange
• Cash is FDIC-insured and Gemini has digital asset insurance
• Competitve crypto staking rates

Cons:

• Confusing fee structure for beginners
• Mobile and web fees are slightly higher than some other exchanges